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What drives the internationalization of Chinese SMEs? The joint effects of international entrepreneurship characteristics, network ties, and firm ownership

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  • Zhang, Xiao
  • Ma, Xufei
  • Wang, Yue
  • Li, Xin
  • Huo, Dong

Abstract

The paper first investigates how Chinese small-to-medium enterprises’ (SMEs) network ties at home moderate the relationships between different international entrepreneurship (IE) characteristics and the degree of internationalization of the firm. The paper further explores how the Chinese SMEs’ ownership arrangement might explain the boundary conditions of the proposed moderating effects of network ties on the relationship between IE characteristics and internationalization. Findings of our empirical study generally support the hypotheses derived from our theoretical framework. The paper offers new insights into the internationalization of Chinese SMEs by ascertaining the differential contingent value of business versus political ties in the relationship between IE characteristics and internationalization and explores the bounds of our findings in terms of the ownership arrangement unique to the Chinese context.

Suggested Citation

  • Zhang, Xiao & Ma, Xufei & Wang, Yue & Li, Xin & Huo, Dong, 2016. "What drives the internationalization of Chinese SMEs? The joint effects of international entrepreneurship characteristics, network ties, and firm ownership," International Business Review, Elsevier, vol. 25(2), pages 522-534.
  • Handle: RePEc:eee:iburev:v:25:y:2016:i:2:p:522-534
    DOI: 10.1016/j.ibusrev.2015.09.001
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    References listed on IDEAS

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    Cited by:

    1. Bagheri, Mahshid & Mitchelmore, Siwan & Bamiatzi, Vassiliki & Nikolopoulos, Konstantinos, 2019. "Internationalization Orientation in SMEs: The Mediating Role of Technological Innovation," Journal of International Management, Elsevier, vol. 25(1), pages 121-139.
    2. Wu, Jie & Ang, Siah Hwee, 2020. "Network complementaries in the international expansion of emerging market firms," Journal of World Business, Elsevier, vol. 55(2).
    3. Veronica, Scuotto & Manlio, Del Giudice & Shlomo, Tarba & Antonio, Messeni Petruzzelli & Victor, Chang, 2020. "International social SMEs in emerging countries: Do governments support their international growth?," Journal of World Business, Elsevier, vol. 55(5).
    4. Virginie Gallego-Roquelaure, 2020. "The emergence process of an international network of SMEs and the evolution of the leader’s role," Journal of International Entrepreneurship, Springer, vol. 18(1), pages 44-62, March.
    5. Yamamoto, Satoshi & Kan, Viktoriya & Bartnik, Roman, 2018. "Going Abroad to Innovate? The Role of Entrepreneurial Orientation in Foreign Business Expansion for Japanese Small and Medium-Sized Manufacturers," CIS Discussion paper series 668, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    6. Sara Foghani & Batiah Mahadi & Rosmini Omar, 2017. "Promoting Clusters and Networks for Small and Medium Enterprises to Economic Development in the Globalization Era," SAGE Open, , vol. 7(1), pages 21582440176, March.
    7. So Won Jeong & Byoungho Jin & Jae-Eun Chung & Heesoon Yang, 2017. "Network evolution and cultivation patterns during the internationalization process: case analyses from Korean SMEs," Asian Business & Management, Palgrave Macmillan, vol. 16(4), pages 323-351, December.
    8. Tianchen Li, 2019. "Engagement in international entrepreneurship: interactive effects of resource-based factors and institutional environments," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-17, December.
    9. Yan, Hongmin & Hu, Xiaowen & Liu, Yulong, 2020. "The international market selection of Chinese SMEs: How institutional influence overrides psychic distance," International Business Review, Elsevier, vol. 29(4).
    10. Kurt, Yusuf & Sinkovics, Noemi & Sinkovics, Rudolf R. & Yamin, Mo, 2020. "The role of spirituality in Islamic business networks: The case of internationalizing Turkish SMEs," Journal of World Business, Elsevier, vol. 55(1).
    11. Jafari Sadeghi, Vahid & Biancone, Paolo Pietro, 2018. "How micro, small and medium-sized enterprises are driven outward the superior international trade performance? A multidimensional study on Italian food sector," Research in International Business and Finance, Elsevier, vol. 45(C), pages 597-606.
    12. Sinkovics, Rudolf R. & Kurt, Yusuf & Sinkovics, Noemi, 2018. "The effect of matching on perceived export barriers and performance in an era of globalization discontents: Empirical evidence from UK SMEs," International Business Review, Elsevier, vol. 27(5), pages 1065-1079.
    13. Idris, Bochra & Saridakis, George, 2018. "Local formal interpersonal networks and SMEs internationalisation: Empirical evidence from the UK," International Business Review, Elsevier, vol. 27(3), pages 610-624.
    14. Channappa Santhosh & Mungila Halemane Bala Subrahmanya, 2020. "The Speed and the Degree of SME Internationalisation in Bangalore: An Analysis of its Determining Factors," The Journal of Entrepreneurship, Entrepreneurship Development Institute of India, vol. 6(2), pages 315-328, July.
    15. Adomako, Samuel & Opoku, Robert A. & Frimpong, Kwabena, 2017. "The Moderating Influence of Competitive Intensity on the Relationship between CEOs' Regulatory Foci and SME Internationalization," Journal of International Management, Elsevier, vol. 23(3), pages 268-278.
    16. Krzysztof Wach, 2017. "Exploring the Role of Ownership in International Entrepreneurship: How does Ownership Affect Internationalisation of Polish Firms?," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(4), pages 205-223.
    17. Abodohoui, Alexis & Su, Zhan, 2020. "Influence of Chinese managerial soft power on African skills development," International Business Review, Elsevier, vol. 29(5).
    18. Jing A. Zhang & Xiling Cui, 2017. "In Search Of The Effects Of Business And Political Ties On Innovation Ambidexterity," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 1-27, February.
    19. Byoungho Jin & Sojin Jung & So Won Jeong, 2018. "Dimensional effects of Korean SME’s entrepreneurial orientation on internationalization and performance: the mediating role of marketing capability," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 195-215, March.

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